(IFC Review): Guernsey's States could be closing the doors on vulture funds chasing debts in the island, reports Channel Online. Vulture funds set out to acquire the debts of poor countries to later enforce them through courts around the world. Whilst there is no evidence of vulture funds having used Guernsey courts for this purpose, a States proposal would ensure the commitment was enshrined in the island's laws. Should the proposition be passed, legislation would follow the principles of the UK's Debt Relief (Developing Countries) Act 2010. This limits the amount that can be recovered by creditors to a level set out by the Heaviliy Indebted Poor Countries Initiative (HIPC) - 150 per cent of the value of a country's annual exports, which is considered a sustainable level.

Chief Minister, Deputy Peter Harwood said: "Through last year's Policy Council consultation, Guernsey's people, businesses and the States have shown that they support the HIPC Initiative and oppose vulture funds. I am pleased we have an opportunity to underline that.
"As an international finance centre, and as a responsible member of the global community, Guernsey takes its international responsibilities seriously. Legislating to prevent claims by vulture funds being enforceable in our courts is a clear demonstration of that."
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